Staycity, which operates nearly 3,000 apartments across 12 European cities, has seen occupancy grow by 2.2 per cent in the first half of the year, to an average of 86.4 per cent across the group, with UK properties seeing a 2.5 per cent increase to 85.8 per cent.

“Despite this year proving challenging for the hotel sector with increasing cost pressures this performance demonstrates the strength of demand for our product as we continue to expand across Europe,” said Tom Walsh, Staycity co-founder and CEO. “The challenges in the UK are well documented and although we are encouraged by the increase in occupancy for our UK-based properties, we are already witnessing a softening of demand for corporate travel. Over 65 per cent of our revenues are currently generated in the UK and we believe a hard Brexit will impact GDP and consequently reduce demand for hotel accommodation, this along with a devaluation of sterling is likely to create significant headwinds which we must prepare for."

“Fortunately, we do not have a large food operation and our team turnover is significantly below the industry average, therefore a rise in input inflation and any immediate restriction on European migration will have less of an impact on Staycity than other businesses in the hospitality sector,” he added.

In its full-year results for 2018 Staycity reported a 14 per cent rise in turnover to €68.3 million, boosted by a hike in average occupancy from 82 per cent to 84 per cent and a rise in ADR from €109 to €110.59. RevPAR rose 4.2 per cent year-on-year to €93.21 while group EBITDA rose 12 per cent to €8.1 million.

Despite concerns over Brexit Staycity is anticipating an 18 per cent rise in turnover to €81 million for 2019, and an 11 per cent boost in EBITDA to €9 million.

Over the past few weeks Staycity has opened sites in Venice Mestre and Paris Marne-la-Vallée, with properties in Berlin and Edinburgh coming on stream before year-end and a 224-apartment property due to open in Manchester’s Northern Quarter at the beginning of 2020. In what has been the company’s biggest recruitment drive to date, around 200 staff have been appointed to operate the new properties.

Further property signings have been announced in London, Dublin, Berlin and Frankfurt, amounting to 500 apartments in major UK cities and 850 apartments in Germany.

“We are on target to achieve our aim of operating 15,000 apartments by 2023 and I’m delighted with the recognition our two brands - Staycity Aparthotels and Wilde Aparthotels by Staycity - are receiving. I’m also extremely proud of our operations team who have this year delivered our best ever guest satisfaction scores,” said Walsh.

Staycity’s first property in Germany is set to open in November. The 48-apartment Wilde is situated at Berlin’s Checkpoint Charlie, one of the city’s most popular tourist attractions.